March 04, 2021

Introducing Plaid Income: Delivering easier and faster income verification

Kate Adamson

Updated on March 05, 2021

Plaid for Payroll: Providing better user experiences with consumer-permissioned payroll data

At Plaid, we believe payroll data is the next frontier in fintech and open finance. Access to payroll data has tremendous potential to expand financial opportunity and help people lead healthier financial lives. 

As a first step toward providing that access, we previously introduced Deposit Switch, the first beta product in our Plaid for Payroll suite. Today, we’re announcing our second solution: Income.

Introducing Plaid Income for faster, higher-confidence income verification

The ability to verify employment status, income, and ability to pay is crucial to nearly every loan application. But historically, proving these things has been unduly burdensome for applicants. They often need to retrieve and share multiple documents, which a lender must process and review. For the applicant, this can lead to frustration, stress, and uncertainty. 

Income, a new Plaid product currently in beta, makes it easier for people to prove their income in order to (among other things):

  • secure loans

  • qualify for mortgages

  • rent apartments

  • lease vehicles

  • obtain personalized financial advice 

Using Income, lenders can quickly and reliably retrieve a consumer’s permissioned income data straight from the source. Consequently, they can do things like make better-informed risk decisions, issue pre-approvals or approvals faster, and allocate fewer resources to manually reviewing documents. 

Within Plaid Link, applicants can choose to share their payroll information in one of two ways:

  • Payroll Income: Enables users to connect their employer or payroll provider account 

  • Document Income: Enables users to upload payroll documents including paystubs, W2s, and supported types of 1099s 

Plaid Income: Built with robust coverage for consumers

Plaid’s holistic solution offers coverage for a broad range of applicants, including full-time and part-time employees, freelancers, and gig-economy workers. Plaid supports real-time payroll authentication for over 250,000 of the largest employers in the United States—including nearly 80% of the Fortune 100—and this list is continually expanding. 

In today’s changing financial-services landscape, offering a swift and seamless onboarding experience is essential to acquiring new customers and growing revenues. To provide a more user-friendly experience for applicants, Plaid is also developing credential-less authentication capabilities with leading payroll providers, including ADP. 

“ADP and Plaid are actively working towards a partnership around consumer-permissioned payroll data that will enable consumers' credential-less access to their payroll details using ADP's API,” said Meraj Mohammad, VP ADP Ventures.

Early feedback from beta partners: 

“We’re always looking for ways to improve, streamline, and digitize the lending experience for our customers. Plaid’s consumer-permissioned Income product helps reduce paperwork and overall closing times for borrowers, while improving efficiency and information accuracy for our lending teams.” – Jake Ford, Product Owner, Veterans United Home Loans.

“At Carputty, a key to providing a faster, easier, and more transparent car-financing experience is being able to verify the applicant’s financial information quickly. Plaid Income allows customers to easily and securely share their information digitally, eliminating what is often a major source of friction and stress in the traditional car buying process.” – Joshua Tatum, Co-Founder/CPO, Carputty 

“At MYRA, we empower an underserved segment—immigrants—to navigate their US finances. Plaid plays an important role in MYRA's ability to provide a diverse, equitable, and inclusive financial ecosystem for internationals." – Sahil Vakil, Founder, MYRA

Get on the waitlist

Whether you’re a fintech developer building the future of lending, a financial institution improving new-customer onboarding, or a lender operationalizing your underwriting flow—we’re ready to partner with you.

Learn more and sign up for the early-access beta program by visiting our Income page.